Indiabulls Real Estate Limited, after selling half of its office assets in Mumbai and Gurugram to Blackstone in March 2018, it sold the remaining assets to the United States fund manager for INR 2717 crore. Along with this deal, the US firm also bought the Chennai office park of Indiabulls for INR 900 crore.
In the previous deal one and a half year ago, Indiabulls sold 50% stake to the New York-based corporation for INR 4750 crore which was valued at INR 9500 crore.
A statement released by IBREL said, “This has generated significant financial resources for the company towards achieving its goal of zero net debt in the current financial year. IBREL and its subsidiaries are also in the process of finalizing a transaction with Blackstone “to divest direct or indirect stake in commercial assets at Worli in Mumbai, rights or stake in Delhi’s K.G. Marg and Sector 104 & Sector 106 in Gurugram.”
Indiabulls has been planning to exit the real estate market for a long time. It has already proposed to merge with Laxmi Vilas Bank. In June this year, 14% of the promoters’ stake in the Mumbai-based firm was bought by Embassy Property Developments. According to a person who has the knowledge of the matter, the ready properties will eventually become a part of the Embassy Office Park REIT, which Blackstone and Embassy co-own together, after the transactions are done.
This deal is expected to help The Blackstone Group establish itself as the biggest commercial real estate giant in India. The company that owns over 70 million sq. feet of commercial properties have already made an investment of over $6 billion in official properties in the country.